Commercial auto insurance can be a little tricky at times. There are quite a few things that factor into it, so it might be difficult to keep track of it all, especially when there are a bunch of other things to manage as a business owner.
Here are some of the questions that you should be prepared to answer as well as how they may affect your insurance premium.
First, if you are a business owner and have one or more vehicles that are driven by your employees, then you need commercial auto insurance. In other words, if you or someone else drives your car in order to make money, then you probably need commercial coverage.
It is important to consider a few key details before speaking with an agent. First, take into consideration who owns the vehicle and what their personal auto insurance covers. Remember, using your car for commercial use without disclosing that information to your insurance provider makes them subject to drop you.
Next, take a look at the make and model of the intended vehicle. Some cars have higher premiums than others depending on their reliability. Going along with examining your vehicle, assess how old it is. Older cars tend to have a little different insurance premiums than newer ones. But, it also depends on features such as anti-theft devices. Older cars may have lower premiums as long as they are equip with proper anti theft devices.
Another point of significance is how many drivers of the vehicle you plan to have. The more drivers you intend to have, the higher your premium will likely be. It is also important to think about how much they will be driving, the more they are on the roads, the higher the rate. Do not neglect their driving records, as well. Avoid allowing employees with bad driving records drive for your business because your affordable commercial car insurance will skyrocket.
After compiling this information and reflecting on what you are planning for your business vehicles, then you are ready to sit down and speak with an insurance agent and secure your commercial vehicles.